Homeowners Insurance Statistics - Some Interesting Facts about Homeowners Insurance

By Stacy Fox

This article is going to look at some important homeowners insurance statistics. You may be surprised by some of the data shown here.

For instance, did you know that two-thirds of homes are underinsured by an average of 23 percent? That means that if something were to happen to your home, you would be looking at paying a quarter of the cost out of your own pocket. Yet it would cost most homeowners less than $10 a month to get the full coverage they need.

And, how much are these costs?

Well, the average payout for fire damage is $24153. Wind and hail payouts are $7163. Water damage pays out at an average of $5531. If a burglary were to occur, the insurance company has a typical reimbursement of $2493.

One of the worst things that can happen to a homeowner is for someone to get hurt on their property. Whether it is a slip and fall or a dog bite, the medical bills and punitive damages can add up. The insurance companies pay out $15854 on a typical bodily injury claim and another $3055 in medical payments. These are costs you don't want to have to assume yourself.

Here's some other interesting homeowners insurance statistics. The average insurance premium in 2006 was $809 per year. Texas had the highest price at $1408 (wind and tornado damage is to blame) and South Dakota has the lowest rates at $628.

Another interesting figure relates to who the largest insurers are. State Farm is number 1 with 21 percent of the market followed by Allstate and Zurich Insurance Group.

58 percent of your premium goes to policy payouts, 28 percent to expenses and 9 percent to profits. The final 5 percent goes to taxes.

Those are some basic homeowners insurance statistics that may be of interest to you.

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